Cava Group (CAVA - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this Mediterranean restaurant chain have returned +2.2%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Retail - Restaurants industry, which Cava falls in, has gained 3.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Cava is expected to post earnings of $0.12 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed +3.3%.
For the current fiscal year, the consensus earnings estimate of $0.55 points to a change of +1.9% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $0.74 indicates a change of +34.2% from what Cava is expected to report a year ago. Over the past month, the estimate has changed -2.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Cava, the consensus sales estimate for the current quarter of $357.44 million indicates a year-over-year change of +22.3%. For the current and next fiscal years, $1.51 billion and $1.79 billion estimates indicate +27.7% and +18.9% changes, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $368.44 million in the last reported quarter, representing a year-over-year change of +31.3%. EPS of $0.19 for the same period compares with $0.16 a year ago.
Compared to the Zacks Consensus Estimate of $353.31 million, the reported revenues represent a surprise of +4.28%. The EPS surprise was +5.56%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CAVA Group, Inc. (NYSE:CAVA – Get Free Report) has been assigned an average rating of “Moderate Buy” from the twenty-eight brokerages that are covering the company, MarketBeat Ratings reports. Ten analysts have rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $88.62.
A number of brokerages recently commented on CAVA. Sanford C. Bernstein restated an “outperform” rating on shares of CAVA Group in a research report on Wednesday, August 12th. Wolfe Research raised their price objective on CAVA Group from $79.00 to $82.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. KeyCorp lowered their target price on shares of CAVA Group from $110.00 to $95.00 and set an “overweight” rating for the company in a report on Wednesday, August 12th. Seaport Research Partners assumed coverage on CAVA Group in a research note on Wednesday, September 16th. They issued a “buy” rating and a $58.00 price objective on the stock. Finally, JPMorgan Chase & Co. decreased their price objective on CAVA Group from $85.00 to $80.00 and set an “overweight” rating on the stock in a research note on Friday, September 18th.
Read Our Latest Stock Analysis on CAVA
Insiders Place Their Bets In other news, insider Douglas Thompson bought 6,500 shares of the business’s stock in a transaction on Monday, August 31st. The stock was acquired at an average price of $66.52 per share, with a total value of $432,380.00. Following the completion of the purchase, the insider directly owned 19,371 shares in the company, valued at $1,288,558.92. This represents a 50.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 6.70% of the stock is owned by insiders. Institutional Inflows and Outflows A number of hedge funds and other institutional investors have recently bought and sold shares of CAVA. BlackRock Inc. purchased a new position in shares of CAVA Group in the 2nd quarter valued at approximately $757,013,000. Wellington Management Group LLP raised its holdings in CAVA Group by 76.9% during the second quarter. Wellington Management Group LLP now owns 1,605,508 shares of the company’s stock valued at $126,000,000 after acquiring an additional 697,699 shares during the period. Primecap Management Co. CA purchased a new stake in CAVA Group in the 2nd quarter worth $92,956,000. William Blair Investment Management LLC purchased a new position in shares of CAVA Group in the 2nd quarter worth $89,861,000. Finally, Prime Capital Management Co Ltd bought a new stake in CAVA Group in the second quarter worth $80,962,000. Institutional investors own 73.15% of the company’s stock.
CAVA Group Stock Down 4.5% Shares of CAVA opened at $54.89 on Thursday. CAVA Group has a twelve month low of $43.41 and a twelve month high of $98.79. The stock has a market capitalization of $6.41 billion, a P/E ratio of 99.80, a P/E/G ratio of 4.45 and a beta of 1.80. The company has a 50 day moving average of $58.79 and a 200-day moving average of $71.35.
CAVA Group (NYSE:CAVA – Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, beating the consensus estimate of $0.18 by $0.01. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%. The company had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. During the same quarter in the prior year, the firm posted $0.16 EPS. The firm’s revenue for the quarter was up 31.3% compared to the same quarter last year. On average, sell-side analysts anticipate that CAVA Group will post 0.55 earnings per share for the current fiscal year.
CAVA Group declared that its Board of Directors has initiated a stock repurchase program on Friday, September 18th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 1.7% of its shares through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its stock is undervalued.
CAVA Group Company Profile (Get Free Report)
CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.
The company’s restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.
CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.
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Investors looking for growth often compare CAVA Group (CAVA -0.78%) and Celsius (CELH +0.81%) to see which fits better in a long-term portfolio. Both have seen rapid expansion while targeting health-conscious consumers.
While one is a rising star in the restaurant world, the other is disrupting the traditional energy drink market. This comparison looks at their business strategies and financial health to help you decide which company offers the most compelling opportunity for 2026.
The case for CAVACAVA Group operates a Mediterranean fast-casual restaurant brand that has rapidly expanded its footprint across the United States. The company focuses on customizable bowls and pitas, positioning itself as a healthy and flavorful alternative among retail stocks. Digital delivery and loyalty programs are vital components of the business, accounting for approximately 37.9% of revenue in 2025.
In its latest annual report, filed for FY 2025, revenue reached nearly $1.2 billion. This represented growth of approximately 22.4% compared to the prior year. Net income for the period was close to $63.7 million, showing a consistent ability to generate profit during its nationwide expansion.
As of its December 2025 balance sheet, the company maintains a current ratio of roughly 2.7x. This measures a company's ability to cover its short-term obligations with its short-term assets. The debt-to-equity ratio is approximately 0.6x, and the company generated roughly $26.1 million in free cash flow, which is cash from operations after paying for capital expenditures.
The case for CelsiusCelsius creates and markets functional fitness drinks designed to appeal to health-conscious consumers through a specialized formula. In its latest annual report, filed for FY 2025, the company noted that sales to PepsiCo (PEP +0.34%) represented roughly 43.2% of total net revenue. Customer concentration like this adds a layer of risk to the business.
For FY 2025, revenue reached close to $2.5 billion. This was an increase of nearly 85.5% over the previous year, driven primarily by the acquisition of the Alani Nu brand. Net income for the year was approximately $108.0 million, despite distributor termination fees and acquisition-related costs.
The balance sheet from December 2025 shows a debt-to-equity ratio of roughly 0.6x. This ratio measures total debt against what shareholders own in the business. Celsius also reported a current ratio of nearly 1.7x and generated approximately $323.4 million in free cash flow during the period.
Risk profile comparisonCAVA faces intense competition from established giants like Starbucks (SBUX +1.53%) that may have greater resources and scale. The company must manage rising construction costs while identifying profitable new locations for its aggressive expansion strategy. It also deals with food safety risks and a heavy reliance on third-party delivery platforms which can impact the guest experience.
Celsius relies heavily on its distribution agreement with PepsiCo, and any disruption there could significantly hurt financial results. The company is also managing integration risks from the acquisitions of Alani Nu and Rockstar Energy brands. Furthermore, it faces heavy competition from Monster Beverage (MNST +0.51%) and ongoing legal challenges regarding securities law allegations filed in 2026.
Valuation comparisonCelsius appears significantly more attractive on a price basis when looking at both sales and future earnings estimates compared to the premium valuation assigned to CAVA.
A Forward P/E compares the current stock price to its expected future earnings estimates, while the P/S ratio measures the market value against sales over the past twelve months.
MetricCAVACelsiusForward P/E105.8x20.7xP/S ratio4.9x2.5xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd go with CAVA, and it's not a close call. CAVA is one of the more exciting growth stories in the restaurant industry. In Q2 2026, same-restaurant sales grew 9% driven by actual guest traffic growth, not just higher prices. Revenue grew 31%, and restaurant-level profit margins held above 25%. The brand is expanding into new markets and the newest locations are outperforming expectations. I'm a fan of any restaurant concept that can pull that off.
Celsius has built a growing multi-brand portfolio, including its acquisition of Alani Nu and a distribution partnership with Rockstar Energy, and revenue grew at a solid pace year over year in Q2 2026. But the quarter was disappointing overall. The company missed both earnings and revenue estimates, gross margins compressed, and earnings fell sharply year over year. Things aren't perfect here, and growth has slowed considerably.
If you're thinking long term, CAVA's combination of traffic-driven growth and expanding unit economics is the more solid opportunity right now. Investors will get a fresh update when both companies report Q3 2026 results in early November.
In the latest close session, Cava Group (CAVA - Free Report) was up +1.14% at $57.90. The stock's change was more than the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.
The stock of Mediterranean restaurant chain has risen by 10.86% in the past month, leading the Retail-Wholesale sector's gain of 3.83% and the S&P 500's gain of 1.46%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company's earnings report is expected on November 4, 2026. On that day, Cava Group is projected to report earnings of $0.12 per share, which would represent no growth from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $357.82 million, showing a 22.44% escalation compared to the year-ago quarter.
CAVA's full-year Zacks Consensus Estimates are calling for earnings of $0.55 per share and revenue of $1.51 billion. These results would represent year-over-year changes of +1.85% and +27.67%, respectively.
Investors might also notice recent changes to analyst estimates for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cava Group presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 104.73. This signifies a premium in comparison to the average Forward P/E of 20.65 for its industry.
We can additionally observe that CAVA currently boasts a PEG ratio of 4.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CAVA's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Cava Group (CAVA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Cava currently has an average brokerage recommendation (ABR) of 1.76, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.76 approximates between Strong Buy and Buy.
Of the 31 recommendations that derive the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 58.1% and 6.5% of all recommendations.
Brokerage Recommendation Trends for CAVA
Check price target & stock forecast for Cava here>>>
The ABR suggests buying Cava, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is CAVA Worth Investing In?Looking at the earnings estimate revisions for Cava, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $0.55.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Cava.
Investors interested in stocks from the Retail - Restaurants sector have probably already heard of Bloomin' Brands (BLMN - Free Report) and Cava Group (CAVA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Bloomin' Brands has a Zacks Rank of #1 (Strong Buy), while Cava Group has a Zacks Rank of #3 (Hold). This means that BLMN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BLMN currently has a forward P/E ratio of 9.73, while CAVA has a forward P/E of 94.23. We also note that BLMN has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CAVA currently has a PEG ratio of 4.00.
Another notable valuation metric for BLMN is its P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CAVA has a P/B of 7.14.
These metrics, and several others, help BLMN earn a Value grade of A, while CAVA has been given a Value grade of F.
BLMN sticks out from CAVA in both our Zacks Rank and Style Scores models, so value investors will likely feel that BLMN is the better option right now.
Bold Mediterranean flavor and feel-good ingredients take center stage this fall, alongside a larger-than-life celebration coming to New York City.
WASHINGTON--(BUSINESS WIRE)--CAVA is channeling Greek Goddess energy with a fresh lineup of offerings built around an all-new Greek Goddess dressing. The latest innovations pair fresh, herby Mediterranean flavors with wholesome ingredients, alongside a seasonal Pomegranate Apple drink.
To celebrate the launch — and prove it’s no myth that big flavor and healthful choices go hand in hand — CAVA is taking inspiration from the ancient Greeks themselves, with a one-of-a-kind Greek Goddess arriving in New York City tomorrow.
The center of the celebration? CAVA’s new Greek Goddess dressing, a tangy blend of rich Greek yogurt, lemon juice, garlic, herbs, and spices. The new dressing serves as the crowning touch on two new curated bowls, bringing a fresh twist to CAVA’s Mediterranean menu.
Meet the Greek Goddess Lineup
Greek Goddess Salmon Bowl: A colorful and satisfying bowl with a creamy green drizzle. CAVA’s Glazed Salmon is served over saffron rice and arugula with red pepper hummus, traditional hummus, pickled onions, fiery broccoli, sumac cabbage slaw, and the new Greek Goddess dressing. Greek Goddess Steak Salad: An epic mix of greens, grilled steak, and bold Mediterranean flavor. Grilled steak is served over Power Greens with traditional hummus and tzatziki, plus tomato + cucumber, sumac cabbage slaw, kalamata olives, feta, pita crisps, and Greek Goddess dressing. Pomegranate Apple Drink: Move over pumpkin, apple is the star flavor of fall 2026. This seasonal drink balances slightly sweet and tart flavors in a vibrant red sip that’s made for crisp fall days, peak foliage, and apple-picking adventures. The new Greek Goddess dressing is CAVA’s Mediterranean twist on a classic green goddess dressing, delivering a tangy, herby flavor that pairs deliciously with glazed salmon or grilled steak. CAVA superfans may even recognize the flavors from the brand’s Greek Goddess dip sold in grocery stores, which inspired this new format reimagined for bowls and pitas in restaurants across the country.
“Our menu is inspired by the Mediterranean tradition of bringing together bold flavors, vibrant ingredients and food that leaves you feeling as good as it tastes. That balance may feel like a Greek myth, but its core to how I grew up, and the Mediterranean way has been proving it true for centuries,” said Ted Xenohristos, Co-Founder and Chief Concept Officer of CAVA. “Our new Greek Goddess dressing gives guests another way to enjoy the ingredients they already know and love.”
A Taste of the Mediterranean, Set in Stone in NYC
The Greek Goddess is also making her mark beyond the menu. Tomorrow, CAVA will transform Flatiron Plaza into a modern-day ode to ancient Greece with an activation that’s truly set in stone. Passersby can also get a taste of the new menu, sampling CAVA’s Greek Goddess dressing paired with fan-favorite pita chips and the seasonal Pomegranate Apple drink.
The Greek Goddess may be holding court in Flatiron Plaza, but her reign extends far beyond NYC. A limited number of CAVA Rewards members across the U.S. who text a limited-time code to CAVA will score a complimentary entree reward to try the new Greek Goddess menu, bringing the Greek Goddess energy to CAVA fans from coast to coast. Join CAVA Rewards at cava.com/rewards ahead of time for a chance to be crowned with the reward. Be sure to keep an eye on @CAVA on socials for all the divine details.
The new offerings are currently available for guests to enjoy at CAVA restaurants nationwide. Guests can taste the fall lineup by ordering in-restaurant, online, or through the CAVA app. For more information, visit CAVA.com and follow @CAVA on Instagram.
About CAVA
CAVA is the category-defining Mediterranean fast-casual restaurant brand bringing together bold, healthful flavors and ingredients at scale. A founder-led company, CAVA is guided by the belief that food should taste as good as it makes you feel, and that great meals and warm Mediterranean hospitality go hand in hand. Across ~500 restaurants in 30 states and Washington, D.C., guests can choose from an abundant selection of chef-curated or build your own bowls and pitas to meet their dietary and taste preferences. There are more than 17 billion possible ingredient combinations, featuring a variety of proteins, vegetables, signature dips such as Crazy Feta®, house-made beverages, and more. Guided by its mission to bring heart, health, and humanity to food, CAVA provides meaningful career opportunities for more than 15,000 team members and continues to invest in its people and communities. Learn more at cava.com.
WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, will host a conference call on Wednesday, November 4, 2026 at 5:00 PM Eastern Time to discuss third quarter 2026 financial results and provide a business update.
A press release with third quarter financial results will be issued at approximately 4:10 PM Eastern Time on Wednesday, November 4, 2026.
The call will be webcast live from the Company’s website on the investor relations page at investor.cava.com. A recorded webcast will be available on CAVA’s investor relations website shortly after the call and available for up to one year.
About CAVA
CAVA is the category-defining Mediterranean fast-casual restaurant brand bringing together bold, healthful flavors and ingredients at scale. A founder-led company, CAVA is guided by the belief that food should taste as good as it makes you feel, and that great meals and warm Mediterranean hospitality go hand in hand. Across 500 restaurants in 30 states and Washington, D.C., guests can choose from an abundant selection of chef-curated or build your own bowls and pitas to meet their dietary and taste preferences. There are more than 17 billion possible ingredient combinations, featuring a variety of proteins, vegetables, signature dips such as Crazy Feta®, house-made beverages, and more. Guided by its mission to bring heart, health, and humanity to food, CAVA provides meaningful career opportunities for more than 15,000 team members and continues to invest in its people and communities. Learn more at cava.com.
Cava Group (CAVA - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CAVA broke through the 20-day moving average, which suggests a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
CAVA could be on the verge of another rally after moving 6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case only gets stronger once investors take into account CAVA's positive earnings estimate revisions. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on CAVA for more gains in the near future.
If I had $10,000 sitting in cash right now, looking for one consumer stock to put it behind, I'd buy Dutch Bros (BROS -4.35%).
I'll say up front that this isn't a sleepy, set-it-and-forget-it dividend stock; it's a growth story, and growth stories carry real risk when the market decides a company has to be perfect. But the numbers behind Dutch Bros right now are hard for me to ignore, and I think the next several years give investors plenty of reasons to be excited, with a few worth watching closely along the way.
It's important to flag that the stock price has plunged about 40% despite strong growth, mainly due to valuation concerns, slower foot-traffic growth, and investor worries over expansion spending, but all this may be an overreaction.
Image source: Getty Images.
What Dutch Bros has actually been building Dutch Bros isn't just opening coffee stands faster than almost anyone else in the industry; it's changing how people order from them. Mobile ordering and order ahead accounted for roughly 16% of transactions last quarter, and management has been candid that there's no specific mix target it's chasing; the real goal is simply to give customers one more easy way to show up. That's a meaningful shift for a drive-thru-heavy brand that built its identity on friendly baristas and personal interaction at the window, and I think it's the right kind of expansion rather than a distraction from what made the company work in the first place. It makes the business stickier.
The bigger swing is food. Dutch Bros has run a food program in roughly 300 shops across 11 states, and it's now rolling that out nationwide, with a full launch targeted by the end of 2026, according to QSR Magazine. Food attached to a coffee ticket can lift average ticket size (think ordering alcohol at a restaurant) at a coffee chain, and if this rollout performs the way management is hoping, it becomes a real bonus for same-shop sales growth beyond just opening new locations. It's also worth noting that an operational lift could strain kitchens and service times if it's rushed, which is the kind of execution risk that's easy to understate when a rollout is still this early.
The growth numbers behind the stock Second-quarter revenue came in at $551 million, up 32% year over year, with company-operated same-shop sales rising 8.3%, including 3.4% transaction growth, not just higher prices doing the work. Management raised full-year guidance on the back of it, now projecting total revenue of roughly $2.1 billion to $2.13 billion. On the store count side, Dutch Bros now plans to open at least 185 new shops in 2026 alone, part of a stated goal of reaching 2,029 locations by 2029, which would represent a massive expansion from where the company stands today.
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Moneyball Superscore
78/100
Today's Change
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-1.73
Current Price
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38.05
Doing the math on $10,000 Dutch Bros shares closed around $38 in early to mid-October. A $10,000 investment buys roughly 258 shares at that price. If the company executes anywhere close to its own 2029 store count target while holding same-shop sales growth in the mid-single-digit range it's currently guiding toward, the combination of more stores and more sales per store is the kind of compounding that's turned other restaurant growth stories into genuinely life-changing investments over a decade.
This whole setup has similar vibes to Cava Group (CAVA -1.23%) in its earlier innings, for better and for worse. Cava posted 9.7% same-restaurant sales growth in the first quarter of 2026, with 6.8 percentage points of that coming from actual guest traffic rather than price hikes, then followed it with a 9% same-store sales beat in the second quarter, numbers that sound a lot like the kind of traffic-driven growth Dutch Bros is putting up now. Cava also leaned on menu innovation the way Dutch Bros is leaning on food, rolling out items like its Pomegranate Glazed Salmon, which actually pressured margin rate on higher input costs but still added to margin dollars thanks to the higher price point it commanded.
None of that stopped Cava's stock from being genuinely wild to hold, swinging from around $95 a share down to roughly $52 within a few months as the broader restaurant sector sold off and investors grew more cautious about paying a premium multiple for growth that occasionally cooled quarter to quarter. If Dutch Bros follows a similar path, and I think the early signs point that way, investors should expect real turbulence layered on top of real growth, not a smooth climb in a straight line.
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Moneyball Superscore
79/100
Today's Change
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-1.23
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53.64
Why now, and what I watch Coffee is about as habitual a purchase as exists, which gives Dutch Bros a demand floor most retail growth stories don't have. Combine that with a brand that's still relatively unknown outside its core markets, a nationwide food rollout just getting started, and a store count still far short of its own long-term target, and I think the setup favors getting in before the chain's name recognition catches up to its ambitions elsewhere in the country. Whenever I'm traveling out west, I pull into a Dutch Bros if I see one. I know I'm getting good coffee and good service. As these stores continue to go east and north. I don't see a bad time to start dollar-cost averaging into this company.
In the latest close session, Cava Group (CAVA - Free Report) was down 1.23% at $53.64. This change lagged the S&P 500's 0.6% gain on the day. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the Mediterranean restaurant chain had gained 0.57% in the past month. In that same time, the Retail-Wholesale sector lost 1.58%, while the S&P 500 gained 1.34%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. In that report, analysts expect Cava Group to post earnings of $0.12 per share. This would mark no growth from the year-ago period. In the meantime, our current consensus estimate forecasts the revenue to be $357.82 million, indicating a 22.44% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.55 per share and revenue of $1.51 billion. These totals would mark changes of +1.85% and +27.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Cava Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Cava Group currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cava Group currently has a Forward P/E ratio of 99.2. This expresses a premium compared to the average Forward P/E of 20.1 of its industry.
One should further note that CAVA currently holds a PEG ratio of 4.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Cava Group (CAVA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this Mediterranean restaurant chain have returned +0.6%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Retail - Restaurants industry, which Cava falls in, has lost 6.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Cava is expected to post earnings of $0.12 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
For the current fiscal year, the consensus earnings estimate of $0.55 points to a change of +1.9% from the prior year. Over the last 30 days, this estimate has changed +0.2%.
For the next fiscal year, the consensus earnings estimate of $0.74 indicates a change of +34.1% from what Cava is expected to report a year ago. Over the past month, the estimate has changed -2.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cava is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Cava, the consensus sales estimate of $357.82 million for the current quarter points to a year-over-year change of +22.4%. The $1.51 billion and $1.79 billion estimates for the current and next fiscal years indicate changes of +27.7% and +18.9%, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $368.44 million in the last reported quarter, representing a year-over-year change of +31.3%. EPS of $0.19 for the same period compares with $0.16 a year ago.
Compared to the Zacks Consensus Estimate of $353.31 million, the reported revenues represent a surprise of +4.28%. The EPS surprise was +5.56%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Cava Group (CAVA - Free Report) was down 2.7% at $52.64. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.
Heading into today, shares of the Mediterranean restaurant chain had lost 10.96% over the past month, lagging the Retail-Wholesale sector's loss of 4.5% and the S&P 500's gain of 0.84%.
The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. The company's earnings per share (EPS) are projected to be $0.12, reflecting no change from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $357.82 million, indicating a 22.44% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and a revenue of $1.51 billion, representing changes of +1.85% and +27.72%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% increase. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 98.81. This represents a premium compared to its industry average Forward P/E of 18.82.
We can also see that CAVA currently has a PEG ratio of 4.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.7.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Cava Group (CAVA - Free Report) ended the recent trading session at $54.10, demonstrating a +1.81% change from the preceding day's closing price. This change outpaced the S&P 500's 0.25% loss on the day. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq gained 0.24%.
The Mediterranean restaurant chain's shares have seen a decrease of 13% over the last month, not keeping up with the Retail-Wholesale sector's loss of 6.54% and the S&P 500's loss of 0.42%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company's upcoming EPS is projected at $0.12, signifying steadiness compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $357.61 million, up 22.37% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.55 per share and a revenue of $1.51 billion, signifying shifts of +1.85% and +27.72%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% downward. Cava Group is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 97.36. This denotes a premium relative to the industry average Forward P/E of 20.7.
We can additionally observe that CAVA currently boasts a PEG ratio of 4.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
WASHINGTON--(BUSINESS WIRE)--CAVA, the category-defining Mediterranean fast-casual restaurant brand, today announced the appointment of John Ludeke as Chief Marketing Officer, strengthening its leadership team as the company deepens its relationship with guests, expands nationally and continues to build one of the most distinctive brands in the restaurant industry.In this role, effective October 12, Ludeke will lead CAVA's marketing organization and partner closely with key functions to strength.
When a sector gets hit with bad news, investors sell first and look for winners later. CAVA Group NYSE: CAVA got caught in exactly that kind of move this month.
WASHINGTON--(BUSINESS WIRE)--CAVA (NYSE: CAVA), the category-defining Mediterranean fast-casual restaurant brand, today announced a significant achievement in the company's continued national expansion as it commemorates its 500-restaurant footprint. CAVA is currently ahead of schedule and poised to surpass its goal of 1,000 restaurants by 2032. CAVA marked the moment at its Minneapolis restaurant which opened today at 622 Washington Avenue SE, and ushers in the company's entrance into Minnesot.
Key Takeaways TXRH benefits from resilient demand, improving labor efficiency and a more favorable commodity outlook.CAVA is pursuing restaurant growth, menu innovation and loyalty engagement to support expansion.TXRH has outperformed CAVA over the past year while trading at a substantially lower forward P/E. CAVA Group, Inc. (CAVA - Free Report) and Texas Roadhouse, Inc. (TXRH - Free Report) are attracting more guests, but stronger demand brings different opportunities and challenges for each. CAVA is scaling its Mediterranean concept across new markets, while Texas Roadhouse is strengthening an established casual-dining business. Both are balancing investments in the guest experience with continued cost pressures.
For investors, the comparison centers on how effectively each company can sustain that momentum. CAVA is expanding through new restaurant openings, menu innovation and loyalty engagement. Texas Roadhouse is building on resilient demand, improving operating efficiency and a more favorable commodity outlook. Which restaurant stock has the edge? Let’s analyze.
The Case for CAVA StockCAVA’s expansion strategy continues to benefit from encouraging new restaurant performance. New locations are exceeding expectations in sales and margin performance, supporting confidence in the Mediterranean concept’s appeal across different markets. The company expects 75-77 net new restaurant openings in 2026, with entry into Las Vegas planned for the second half and the Bay Area in 2027.
Menu innovation provides another avenue for growth. Pomegranate Glazed Salmon increased new-customer acquisition and visit frequency among loyalty members who purchased the offering. CAVA has also completed a market test of roasted garlic shrimp, which remains within its development process. Seasonal menu additions provide further opportunities to encourage repeat visits while limiting operational complexity.
The company’s loyalty platform is strengthening customer engagement. Membership is growing faster than the restaurant footprint, while targeted offers are helping guests advance through loyalty tiers. The Flavor Passport experience encourages members to explore more of the menu and earn rewards, supporting CAVA’s efforts to build deeper customer relationships as it expands.
Operational investments are helping support this growth. CAVA’s kitchen display system has improved speed, order accuracy and productivity, contributing to better ratings and visibility on delivery platforms. The rollout of pre-marinated chicken through the remainder of 2026 and into 2027 is intended to simplify preparation and redirect time toward hospitality. Leadership development and earlier onboarding of general managers are also preparing teams for new openings, while a debt-free balance sheet provides financial flexibility.
However, CAVA faces continued cost pressure from fuel surcharges, wage investments, pre-marinated chicken and spending to support expansion. With no near-term plans to increase menu prices, these investments remain an important consideration for profitability. Industrywide food-safety concerns also temporarily affected sales despite CAVA reporting no direct exposure to the implicated ingredients. Sales trends subsequently improved, although consumer uncertainty remains a risk to sales momentum.
The Case for TXRH StockTexas Roadhouse continues to benefit from its everyday-value positioning, food quality and consistent service. Its operating model emphasizes local community relationships and restaurant-level execution, helping sustain guest demand. Continued comparable-sales momentum early in the third quarter supports confidence in the company’s ability to attract customers in a competitive dining environment.
Operating improvements are helping the company serve more guests efficiently. Digital kitchens, upgraded guest management systems and pay-at-the-table capabilities support smoother restaurant operations. Employee tenure and growing takeout demand are also contributing to labor productivity, helping Texas Roadhouse manage wage pressure while maintaining service standards.
Takeout provides an additional source of growth. Easier ordering, convenient pickup and greater attention to order accuracy are supporting demand beyond the dining room. Improving dining-room sales mix is another encouraging development, with further progress reported early in the third quarter. These trends support the company’s efforts to increase sales through both on-premise and off-premise occasions.
The development pipeline provides visibility into continued expansion. Texas Roadhouse expects approximately 35 company-owned openings in 2026, including about 20 Texas Roadhouse restaurants, at least 10 Bubba’s 33 locations and four Jaggers restaurants. The core brand has a full development pipeline through 2028, with work extending into 2029. Encouraging new-location performance at Bubba’s 33 supports plans to maintain a low-double-digit annual opening pace over the next several years.
The commodity outlook has also improved. Texas Roadhouse lowered its 2026 commodity inflation forecast to approximately 5% from 6-7%, primarily supported by more favorable sirloin pricing. A planned 1% menu price increase at the beginning of the fourth quarter is intended to help offset structural inflation while preserving everyday value.
However, beef supply remains tight, and commodity inflation is expected to rise sequentially in the fourth quarter after moderating in the third. Wage pressure, higher general and administrative expenses and depreciation remain earnings constraints, while holiday shifts are expected to reduce fourth-quarter comparable-sales growth by approximately 75 basis points.
How Do Estimates Compare for CAVA & TXRH?The Zacks Consensus Estimate for CAVA’s 2026 sales and earnings per share (EPS) suggests year-over-year increases of 27.8% and 1.9%, respectively. In the past 60 days, earnings estimates for 2026 have increased 1.9%.
CAVA Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Roadhouse’s 2026 sales and EPS suggests year-over-year increases of 11.3% and 8.9%, respectively. In the past 60 days, earnings estimates for 2026 have increased 3%.
TXRH Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation of CAVA & TXRHShares of CAVA have declined 17% in the past year, underperforming the Zacks Retail – Restaurants industry’s fall of 11.5% and the S&P 500’s rise of 18%. Meanwhile, Texas Roadhouse has gained 2.7% over the same period.
CAVA is trading at a forward 12-month price-to-earnings ratio of 77.16, compared with the industry average of 20.48. TXRH forward 12-month P/E multiple stands at 21.88.
Image Source: Zacks Investment Research
ConclusionOverall, CAVA and Texas Roadhouse offer distinct growth opportunities. CAVA’s menu innovation, growing loyalty engagement and encouraging new restaurant performance support its expansion strategy, while Texas Roadhouse benefits from resilient demand, improving labor efficiency and a more favorable commodity outlook. TXRH’s stronger projected EPS growth, more favorable earnings-estimate revisions and substantially lower forward P/E than CAVA give it an edge here.
Both CAVA and TXRH currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CAVA generated $44.8M in free cash flow through Q2 2026 as operating cash flow rose to $134.5M.CAVA expects lower second-half free cash flow amid weaker seasonality and added 2027 development spending.CAVA plans $5M-$10M for restaurant upgrades and ended Q2 with $435.6M in cash and investments. CAVA Group, Inc. (CAVA - Free Report) continues to generate strong cash flow while investing in restaurant expansion and initiatives designed to enhance the guest experience. Through the second quarter of 2026, the company generated $44.8 million in free cash flow, while cash flow from operations increased to $134.5 million from $98.9 million in the comparable prior-year period. Management expects full-year free cash flow to remain strong, although the second half is expected to be less seasonally favorable and include additional capital investments.
The second half is expected to include additional investment as CAVA builds its pipeline for 2027 restaurant openings. Management noted that the remaining quarters are less seasonally favorable and typically generate lower free cash flow. In addition to development-related spending, the company expects to invest approximately $5 million-$10 million in opportunities to enhance existing restaurants and improve the guest experience. These investments are expected to include refreshes related to aspects of Project Soul and potential grill expansions.
CAVA also retains substantial liquidity as it continues to invest for growth. At the end of the second quarter, CAVA had $435.6 million in cash and investments, compared with $393 million as of the 2025 end. The company reported no debt and retained access to a $150 million undrawn revolver.
CAVA’s strong first-half cash generation provides a solid foundation for continued investment in restaurant growth and existing locations. However, less favorable seasonality and additional CapEx in the second half could moderate cash generation. With management expecting full-year free cash flow to remain strong, the pace of investment and cash generation will likely remain key considerations through the remainder of 2026.
CAVA’s Price Performance, Valuation & EstimatesCAVA’s shares have declined 21.2% in the past year compared with the industry’s fall of 11.6%. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) and McDonald's Corporation (MCD - Free Report) have declined 27.8% and 18.1%, respectively.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 3.52, above the industry’s average of 2.99. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 2.78 and 6.01, respectively.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 earnings per share has increased in the past 30 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
The company’s earnings in 2026 are likely to increase 1.9% on a year-over-year basis. Conversely, industry players such as McDonald’s and Dutch Bros are likely to witness an increase of 5.6% and 27.6%, respectively, year-over-year in 2026 earnings.
CAVA’s Zacks RankCAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cava earns a buy rating due to robust revenue growth and a clean looking balance sheet, despite a high valuation. CAVA's aggressive expansion plan targets over 1,000 stores by 2032, aiming to preempt competition and capitalize on its unique Mediterranean fast-casual niche. Same store sales rose 9% and foot traffic increased 5.3%, while year-over-year revenue and EBITDA growth exceed 26%.
WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA), today announced that its board of directors approved a share repurchase program with authorization to purchase up to $100 million of its outstanding shares of common stock. Repurchases under the program may be made in the open market, in privately negotiated transactions or by other means, including through trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, with the amount and timing of repurcha.
CAVA Group, Inc. (NYSE: CAVA), today announced that its board of directors approved a share repurchase program with authorization to purchase up to $100 million
Cava Group (CAVA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this Mediterranean restaurant chain have returned -30.5% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Retail - Restaurants industry, to which Cava belongs, has lost 9.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Cava is expected to post earnings of $0.12 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $0.55 points to a change of +1.9% from the prior year. Over the last 30 days, this estimate has changed +1%.
For the next fiscal year, the consensus earnings estimate of $0.73 indicates a change of +34.1% from what Cava is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Cava, the consensus sales estimate of $358.05 million for the current quarter points to a year-over-year change of +22.5%. The $1.51 billion and $1.79 billion estimates for the current and next fiscal years indicate changes of +27.8% and +19%, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $368.44 million in the last reported quarter, representing a year-over-year change of +31.3%. EPS of $0.19 for the same period compares with $0.16 a year ago.
Compared to the Zacks Consensus Estimate of $353.31 million, the reported revenues represent a surprise of +4.28%. The EPS surprise was +5.56%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The restaurant industry faces significant headwinds.
*Stock prices used were the afternoon prices of Sept. 14, 2026. The video was published on Sept. 16, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
CAVA Group, Inc. remains a Hold as valuation now aligns with fair value amid macro headwinds and technical weakness. Despite 32% revenue growth and strong Q2 results, CAVA faces tepid FY26 EPS growth and high short interest at 11.24%. Rising labor and commodity costs, competitive pressures, and cautious consumer spending constrain upside for CAVA.
On September 15, 2026, Cava Group Inc CAVA shares experienced a significant decline, falling 8.9% to a current price of $49.99. This drop is notable considering the stock's 52-week range, which has seen a high of $98.79 and a low of $43.41.
GF Value™ verdict: Current price is $49.99, which is 44.7% below the estimated fair value of $90.43. GF Score™ of 58/100 indicates an average overall rating. Most notable signal: Insiders have sold a net of $285.2 million over the past 12 months. Is CAVA Overvalued or Undervalued? Cava Group Inc CAVA is currently deemed significantly undervalued according to GF Value™, which estimates its fair value at $90.43. With the stock trading at $49.99, this suggests a substantial margin of safety of 44.7%. GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value, taking into account historical trading multiples, past business growth, and future performance forecasts. The current price presents an appealing opportunity for investors, but potential risks should be considered, particularly in light of the recent insider selling activity.
Despite the undervaluation indicated by GF Value™, the selling pressure from insiders could reflect concerns about future performance or market conditions that investors may want to monitor closely. Thus, while the valuation may seem attractive, caution is warranted given the current dynamics surrounding the stock.
How Does CAVA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 90.9x 150.6x (5-Year Median) Forward P/E 67.2x N/A The current P/E ratio of 90.9x is significantly below its 5-year median of 150.6x, indicating that CAVA is trading at a lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, reinforcing the notion that the stock is undervalued at present levels.
What Does CAVA's GF Score™ Tell Us? The GF Score™ provides a comprehensive measure of a company's financial health, including factors such as financial strength, profitability, growth, valuation, and momentum. CAVA's GF Score™ of 58/100 reflects average performance overall, with specific strengths and weaknesses in various sub-ranks.
Metric Rating GF Score™ 58/100 Financial Strength 7/10 Profitability 4/10 Growth 0/10 Valuation 4/10 Momentum 7/10 CAVA's strongest area is its financial strength, rated at 7/10, indicating a solid balance sheet. However, the weakest area is growth, receiving a score of 0/10, suggesting challenges in expanding its business. The mixed ratings across the sub-ranks highlight the need for a cautious approach, particularly regarding growth prospects.
What Are Gurus and Insiders Doing with CAVA? Currently, four gurus hold shares of Cava Group Inc, with one guru adding to their position while four have trimmed their holdings in recent quarters. This mixed activity suggests a lack of consensus among institutional investors regarding the stock's future potential.
In terms of insider activity, the past year has seen insiders purchase $1.1 million worth of shares, contrasted with $286.3 million in sales, resulting in a net selling of $285.2 million. This pattern of significant selling raises concerns about insider confidence in the company's prospects, which may be a critical signal for potential investors to consider.
What This Means for Investors Based on the GF Value™ assessment, Cava Group Inc CAVA is currently undervalued with a fair value estimate significantly higher than its current trading price. However, the extensive insider selling and average GF Score™ suggest that while there may be an investment opportunity, it carries certain risks that should be carefully evaluated. For further insights, visit the Cava Group Inc (CAVA) stock page and explore additional resources such as the GF Value™ page and the GuruFocus Stock Screener.
Frequently Asked Questions What is CAVA's GF Score™?
CAVA has a GF Score™ of 58/100, indicating an average overall rating based on various financial and operational metrics.
Is CAVA overvalued or undervalued?
CAVA is currently undervalued, with a GF Value™ of $90.43 compared to its current price of $49.99, representing a significant upside potential.
What is CAVA's P/E ratio?
The current P/E ratio for CAVA is 90.9x, which is 40% below its 5-year median of 150.6x, indicating it is trading at a lower valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Key Takeaways CAVA's loyalty base is growing faster than new restaurant openings, expanding its first-party audience.CAVA posted 9% same-restaurant sales growth, driven by 5.3% traffic growth in the second quarter.CAVA says Pomegranate Glazed Salmon lifted new-customer acquisition and loyalty-member frequency. CAVA Group, Inc. (CAVA - Free Report) is expanding its loyalty platform as it seeks to deepen customer engagement alongside rapid restaurant growth. During the second quarter of 2026, the company said its loyalty member base was growing faster than new restaurant openings, pointing to continued expansion of its first-party audience. CAVA also launched Flavor Passport, an in-app experience designed to encourage menu discovery and reward engagement.
The expanding loyalty base comes as CAVA continues to generate strong traffic growth. Same-restaurant sales increased 9% in the second quarter, driven by 5.3% traffic growth, while revenues rose 31.3% year over year to $365.4 million. Menu innovation is providing another avenue to engage customers, with management noting that Pomegranate Glazed Salmon increased new-customer acquisition and drove higher frequency among loyalty members who purchased it.
The loyalty platform could provide CAVA with an incremental lever to sustain traffic as the company navigates near-term industry pressures. Management also sees room to increase marketing investment from historically low levels, although it plans to do so based on the returns generated. At the same time, CAVA continues to emphasize guest experience and targeted loyalty initiatives to deepen customer engagement and support traffic.
How CAVA’s Loyalty Growth Compares With PeersMcDonald’s Corporation (MCD - Free Report) has built a significantly larger loyalty ecosystem, with nearly 220 million active loyalty users globally. The company has integrated its major markets around a common app and loyalty program, using digital engagement to drive customer traffic and frequency. In the second quarter, McDonald’s acknowledged that pulling back on digital offers negatively affected visits from some of its most loyal customers and is now increasing targeted digital offerings to re-engage high-frequency users.
Starbucks Corporation (SBUX - Free Report) is similarly leveraging loyalty to strengthen customer engagement and repeat visits. The company ended the third quarter with 35.8 million 90-day active Starbucks Rewards members in the United States, with its new program exceeding expectations on engagement. Starbucks also noted that one in three members who tried a new modification through its Free Mod Monday benefit reordered it in subsequent weeks, highlighting the potential for targeted loyalty benefits to influence repeat purchases.
With loyalty membership growing faster than CAVA’s restaurant base, continued first-party audience expansion and menu innovation could provide incremental support to traffic as the company scales. While the broader impact of loyalty on systemwide frequency remains unquantified, higher frequency among loyalty members purchasing Salmon offers an early positive signal. Successful execution of CAVA’s loyalty and digital initiatives could deepen customer engagement and provide an additional lever for sustaining same-restaurant sales growth.
CAVA’s Price Performance, Valuation & EstimatesCAVA shares have declined 13% over the past year compared with the industry’s fall of 7.2%.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 3.75, above the industry’s average of 3.17.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 earnings per share (EPS) implies a year-over-year rise of 1.9%. The EPS estimates for 2026 have declined in the past 30 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
CAVA’s Zacks RankCAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cava Group (CAVA - Free Report) ended the recent trading session at $54.89, demonstrating a -1.77% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.48%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Shares of the Mediterranean restaurant chain have depreciated by 24.91% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 7.24%, and the S&P 500's loss of 0.82%.
The upcoming earnings release of Cava Group will be of great interest to investors. In that report, analysts expect Cava Group to post earnings of $0.12 per share. This would mark no growth from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $358.05 million, showing a 22.52% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.51 billion, which would represent changes of +1.85% and +27.87%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% higher. Cava Group is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Cava Group is currently trading at a Forward P/E ratio of 102.28. This expresses a premium compared to the average Forward P/E of 21.53 of its industry.
We can also see that CAVA currently has a PEG ratio of 4.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Amundi reduced its holdings in CAVA Group, Inc. (NYSE:CAVA – Free Report) by 35.8% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 186,335 shares of the company’s stock after selling 103,946 shares during the quarter. Amundi owned about 0.16% of CAVA Group worth $14,624,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently made changes to their positions in CAVA. Oppenheimer Asset Management Inc. acquired a new stake in CAVA Group in the 2nd quarter valued at $1,551,000. Trillium Asset Management LLC bought a new position in shares of CAVA Group in the second quarter valued at approximately $3,279,000. Prospect Financial Services LLC bought a new stake in shares of CAVA Group during the 2nd quarter worth $1,348,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of CAVA Group during the 2nd quarter valued at approximately $6,833,000. Finally, Prime Capital Management Co Ltd increased its position in CAVA Group by 90.6% in the fourth quarter. Prime Capital Management Co Ltd now owns 1,031,630 shares of the company’s stock worth $60,546,000 after buying an additional 490,300 shares during the last quarter. Institutional investors own 73.15% of the company’s stock.
CAVA Group Trading Up 3.3% Shares of CAVA stock opened at $55.76 on Friday. The stock has a market cap of $6.51 billion, a PE ratio of 101.38, a price-to-earnings-growth ratio of 4.19 and a beta of 1.74. CAVA Group, Inc. has a 12 month low of $43.41 and a 12 month high of $98.79. The company’s fifty day moving average price is $65.92 and its 200-day moving average price is $76.83.
CAVA Group (NYSE:CAVA – Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.01. The firm had revenue of $368.44 million during the quarter, compared to analyst estimates of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The business’s revenue was up 31.3% on a year-over-year basis. During the same period last year, the business earned $0.16 earnings per share. On average, sell-side analysts forecast that CAVA Group, Inc. will post 0.55 earnings per share for the current fiscal year. Analyst Upgrades and Downgrades Several research firms have recently issued reports on CAVA. Wall Street Zen raised shares of CAVA Group from a “sell” rating to a “hold” rating in a research report on Sunday, May 24th. Northcoast Research raised CAVA Group from a “sell” rating to a “neutral” rating in a report on Thursday, August 13th. Guggenheim lowered their price target on CAVA Group from $100.00 to $95.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. UBS Group upgraded shares of CAVA Group from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $85.00 to $90.00 in a research report on Wednesday, June 10th. Finally, Stifel Nicolaus increased their price objective on CAVA Group from $90.00 to $105.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, CAVA Group has a consensus rating of “Moderate Buy” and a consensus target price of $89.44.
Read Our Latest Stock Analysis on CAVA
Insiders Place Their Bets In related news, CFO Tricia K. Tolivar sold 4,969 shares of CAVA Group stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $89.43, for a total value of $444,377.67. Following the completion of the sale, the chief financial officer directly owned 234,931 shares in the company, valued at approximately $21,009,879.33. This trade represents a 2.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 12,490 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the transaction, the insider directly owned 98,490 shares of the company’s stock, valued at $8,864,100. The trade was a 11.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 67,512 shares of company stock valued at $6,050,417. 6.70% of the stock is owned by company insiders.
CAVA Group Company Profile (Free Report)
CAVA Group, Inc is a U.S.-based restaurant company that operates the CAVA fast-casual Mediterranean restaurant brand. Its restaurants offer customizable meals, including grain bowls, salads, pitas, dips, spreads and sides made with Mediterranean-inspired ingredients and flavors. Customers can order meals in restaurants, through digital channels and for catering.
The company’s menu is centered on a build-your-own format, allowing guests to select proteins, grains, greens, toppings, sauces and dips.
Read More Five stocks we like better than CAVA Group Block Makes a Federal Trust Bank Move That Could Reshape Its Fintech Model Kroger’s Textbook Entry for Buy-and-Hold Investors AST SpaceMobile Looks to Extend Its 30-Day FCC Satellite Testing Window Amgen Drops 10% on a Trial It Didn’t Even Run Want to see what other hedge funds are holding CAVA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CAVA Group, Inc. (NYSE:CAVA – Free Report).
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From smaller portions and adults ordering kids meals to more protein and Mediterranean-style eating, Cava CEO Brett Schulman breaks down how GLP-1s are changing customer behavior. Check out our daily newsletter!
It has been about a month since the last earnings report for Cava Group (CAVA - Free Report) . Shares have lost about 18.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cava due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
CAVA Q2 Earnings Beat Estimates on Traffic and Unit GrowthCAVA delivered earnings of $0.19 per share in the second quarter of fiscal 2026, up 18.8% from $0.16 a year ago and surpassing the Zacks Consensus Estimate of $0.18 by 5.6%. Total revenues rose 31.3% year over year to $368.44 million and beat the consensus mark of $353 million by 4.4%.
Results reflected continued restaurant expansion and healthy guest demand. CAVA opened 17 net new restaurants, while same-restaurant sales increased 9%, including Guest Traffic growth of 5.3%.
CAVA Unit Growth Expands Restaurant SalesThe CAVA unit’s revenues increased 31.3% year over year to $365.43 million in the fiscal second quarter. The increase primarily reflected contributions from 94 net new CAVA restaurant openings during or subsequent to the second quarter of fiscal 2025, along with higher sales at restaurants in the comparable base.
Menu price and product mix contributed 3.7 percentage points to same restaurant sales. Average unit volume rose to $3.09 million from $2.94 million a year earlier. The company ended the quarter with 476 CAVA restaurants, up 19.6% year over year, while new restaurant productivity remained above 100%.
CAVA Group Sees Margin Pressure From CostsCAVA’s restaurant-level profit increased 28.1% year over year to $93.81 million. However, restaurant-level profit margin contracted 60 basis points to 25.7%, reflecting a less favorable cost mix despite strong restaurant sales.
Food, beverage and packaging costs rose 50 basis points to 30.0% of revenues, largely because of input costs tied to the Pomegranate Glazed Salmon launch. Labor and related costs increased 30 basis points to 25.3%, reflecting an incremental 3% wage investment. Occupancy improved 50 basis points to 6.3%, while other operating expenses increased 40 basis points to 12.8% on a higher mix of third-party delivery.
CAVA Generates Strong Cash Flow Through Q2CAVA paired growth with stronger cash generation through the second quarter of fiscal 2026. Net cash provided by operating activities increased 36.0% year over year to $134.5 million from $98.9 million, primarily reflecting improved operating performance and favorable working capital changes. Purchases of property and equipment totaled $89.7 million, resulting in year-to-date free cash flow of $44.8 million, up from $21.9 million a year ago.
Liquidity remained solid at the end of the fiscal second quarter. CAVA held $322.8 million in cash and cash equivalents and $112.8 million in fixed-income investments, representing approximately $435.6 million of combined cash and investments. The company had no borrowings under its $150 million revolving credit facility and had $149.1 million of available borrowing capacity, net of $0.9 million in outstanding letters of credit.
CAVA Maintains FY26 Outlook Amid Sales ReboundCAVA reiterated its fiscal 2026 outlook for 75-77 net new restaurant openings and same restaurant sales growth of 4.5%-6.5%. The company continues to expect a restaurant-level profit margin of 23.7%-24.3%, pre-opening costs of $22.0-$22.5 million and adjusted EBITDA of $181-$191 million.
Management said industry concerns around the Cyclospora outbreak pressured same restaurant sales around quarter-end, but trends improved sequentially and most recently recovered to the mid-single digits. The outlook also incorporates expected fuel surcharges, the partial rollout of pre-marinated chicken and continued wage investments, while management indicated fiscal fourth-quarter restaurant-level margins historically decline by close to 300 basis points from the fiscal third quarter because of seasonality.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -12.84% due to these changes.
VGM ScoresAt this time, Cava has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cava has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCava belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Restaurant Brands (QSR - Free Report) , has gained 2.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Restaurant Brands reported revenues of $2.52 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $1.07 for the same period compares with $0.94 a year ago.
Restaurant Brands is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +5.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Restaurant Brands. Also, the stock has a VGM Score of C.
Cava Group (CAVA - Free Report) closed the most recent trading day at $56.51, moving -6.04% from the previous trading session. This change lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
Shares of the Mediterranean restaurant chain have depreciated by 1.1% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 6.98%, and lagging the S&P 500's loss of 0.97%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company's upcoming EPS is projected at $0.12, signifying steadiness compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $355.32 million, up 21.58% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.54 per share and a revenue of $1.51 billion, indicating changes of 0% and +27.87%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% lower. Cava Group is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 111.18. For comparison, its industry has an average Forward P/E of 23.04, which means Cava Group is trading at a premium to the group.
One should further note that CAVA currently holds a PEG ratio of 4.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Restaurants industry stood at 1.82 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAVA in the coming trading sessions, be sure to utilize Zacks.com.
Douglas W. Thompson, Chief Operations Officer at CAVA Group, Inc. (CAVA -1.48%), reported a purchase of 6,500 shares of common stock on Aug. 31, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$432,000Shares purchased6,500Post-transaction shares (directly held)19,371Post-transaction value$1.27 millionTransaction value based on SEC Form 4 weighted average purchase price ($66.52); post-transaction value based on Aug. 31, 2026, market close ($65.75).
Key questionsWhat is the significance of this purchase relative to the executive's prior position?
Thompson expanded his direct capital commitment to the firm by 51% in this transaction. This move increased his direct ownership from 12,871 shares to 19,371 shares.How does the acquisition price relate to the stock's recent performance?
The shares were purchased at $66.52 per share on Aug. 31, 2026, while the stock's one-year return was -3% as of the transaction date. As of the Sept. 1, 2026 market close, shares were priced at $61.08.Does the insider maintain other forms of equity exposure in the company?
The reported direct holdings include unvested restricted stock units. Thompson also holds derivative securities, providing an additional economic interest in the company's long-term performance beyond his current common stock position.Company OverviewMetricValueShare Price (as of market close 2026-09-01)$61.08Market Capitalization$7.3 billionRevenue (TTM)$1.4 billionNet Income (TTM)$66.3 millionCompany SnapshotCAVA Group operates a chain of Mediterranean restaurants that offer customizable salads, savory dips, spreads, toppings, and distinctive dressings, with products distributed through Whole Foods and other grocery retailers, complemented by online food-ordering services.The company generates revenue through direct restaurant operations, retail product distribution partnerships, and digital ordering channels, leveraging a vertically integrated supply chain to support its Mediterranean-focused culinary platform.CAVA targets health-conscious consumers seeking fresh, customizable Mediterranean cuisine through both dine-in and off-premise channels, including grocery retail partnerships and digital delivery platforms.CAVA Group, Inc. operates as a leading Mediterranean restaurant chain with approximately 13,480 employees and a strong market presence across multiple distribution channels. The company has established a differentiated business model that combines company-operated restaurants with retail product distribution, positioning itself at the intersection of fast-casual dining and packaged-food retail. With TTM revenue of $1.4 billion and net income of $66.3 million, CAVA demonstrates operational scale and profitability within the competitive casual dining sector.
What this transaction means for investorsSome insider transactions can be complex, making it difficult to determine what opinion an executive might actually hold over the company in question. However, there is one type of insider trade that is fairly unambiguous: An insider buy. When insiders purchase stock and put more of their own wealth on the line, they are doing so because they believe the stock is a bargain. With that in mind, let's take a closer look at CAVA stock, which recently saw one such transaction.
To start, let's review the stock's recent performance. Since 2023, CAVA stock has generated a total return of 39%, equating to a compound annual growth rate (CAGR) of 10.7%. It has underperformed the S&P 500, which has delivered a total return of 81%, with a CAGR of 20.3% over the same period.
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As for fundamentals, CAVA has several strong metrics working in its favor. For one, revenue has soared from less than $600 million in 2022 to over $1.37 billion today. Year-over-year revenue growth has averaged 27% since 2022, and it currently stands at 31%. What's more, the company still has plenty of room to grow, with about 475 locations and plans to add approximately 75 stores in the year ahead.
However, there are concerns, too. First off, profits remain modest. In turn, the stock sports a price-to-earnings (P/E) multiple of 108x. For comparison, Chipotle Mexican Grill, one of CAVA's competitors, has a P/E multiple of only 34x. In addition, some analysts have highlighted CAVA's potential vulnerability to labor and food inflation. With prices rising, the company could face increasing pressure on its margins.
To sum up, CAVA stock paints a mixed picture. On the bullish side, insider buying combined with solid growth points to a stock with plenty of upside. However, these considerations have to be weighed against the stock's lofty valuation and sensitivity to inflation. Nevertheless, CAVA remains a growth stock that investors should keep a close eye on.
Key Takeaways CAVA's 2024 cohort is its strongest-performing vintage, generating double-digit same-store sales.CAVA's new restaurants continue to exceed sales and margin expectations, with productivity above 100%.CAVA targets 75-77 net new restaurants in 2026 as newer vintages strengthen its development outlook. CAVA Group, Inc. (CAVA - Free Report) is seeing strong performance from its newer restaurant vintages as it expands its national footprint. The company’s 2024 restaurant cohort is generating double-digit same-store sales and represents the highest-performing vintage in its portfolio. Based on the performance of that cohort, CAVA expects the 2026 classes to follow a similar maturation pattern.
The strength of newer vintages is important as CAVA increases its restaurant base. The company ended the second quarter of 2026 with 476 restaurants after opening 17 net new locations. New restaurant productivity remained above 100%, while recent openings continued to exceed expectations on both sales and margin performance. Systemwide average unit volumes reached $3.1 million.
New-unit strength has also been broad-based. CAVA reported solid performance across geographies and restaurant formats, including established and emerging markets. The company attributed part of this performance to rising brand awareness and investments aimed at supporting the guest experience and restaurant execution.
The maturation profile of newer restaurants provides additional support to CAVA’s expansion strategy. The company indicated that newer restaurants typically start at high sales levels, moderate during their first year after opening and subsequently rebound toward historical performance.
The 2024 cohort’s double-digit same-store sales performance provides evidence of continued growth as these restaurants mature. CAVA is also incorporating recent performance data into its site-selection models and cash-on-cash return analysis for future openings.
The 2024 cohort therefore provides an important benchmark for CAVA’s future development. Double-digit comps from this vintage, combined with above-100% new restaurant productivity and broad-based market strength, support the company’s current expansion trajectory. CAVA expects to open 75-77 net new restaurants in 2026.
Key Competitors Take Different Paths to Unit GrowthChipotle Mexican Grill, Inc. (CMG - Free Report) is supporting a sizable development pipeline with established new-unit economics. CMG opened 101 restaurants in the second quarter of 2026, including 80 Chipotlanes, and continues to expect approximately 350 openings for the full year. New restaurant productivity has remained near 80%, while second-year cash-on-cash returns are approximately 60%. Despite the higher development pace, the impact of new openings on comparable restaurant sales has remained near 100 basis points, consistent with historical levels. These trends likely support Chipotle’s long-term potential to operate at least 7,000 restaurants across North America.
Sweetgreen, Inc. (SG - Free Report) is taking a more measured approach to restaurant expansion. The company opened four restaurants and closed two in the second quarter, ending the period with 287 locations. Sweetgreen is refining its prototype design, construction costs, market selection and new-unit economics while focusing on rebuilding average unit volumes, restaurant-level cash flow and profitability. SG expects to maintain a conservative development pace in 2027, similar to or slower than 2026, with an emphasis on locations that meet its return thresholds before accelerating growth.
CAVA’s Price Performance, Valuation & EstimatesShares of CAVA have lost 7.4% in the past year compared with the industry’s decline of 8.1%.
CAVA’s Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA stock trades at a forward price-to-sales ratio of 4.21, above the industry’s average of 3.27.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2027 earnings per share (EPS) implies a year-over-year uptick of 34%. The EPS estimates for 2027 have increased in the past 30 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
CAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Deutsche Bank AG bought a new position in CAVA Group, Inc. (NYSE: CAVA) during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 9,050 shares of the company's stock, valued at approximately $710,000. Other institutional investors have also recently bought and
Canada Pension Plan Investment Board purchased a new position in shares of CAVA Group, Inc. (NYSE:CAVA – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 63,400 shares of the company’s stock, valued at approximately $4,976,000. Canada Pension Plan Investment Board owned 0.05% of CAVA Group at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also added to or reduced their stakes in CAVA. Castleark Management LLC bought a new stake in shares of CAVA Group in the 2nd quarter valued at about $6,784,000. Nicholas Investment Partners LP acquired a new position in CAVA Group in the 2nd quarter worth $9,408,000. Legal & General Group Plc acquired a new position in shares of CAVA Group during the second quarter worth about $9,743,000. The Manufacturers Life Insurance Company bought a new position in shares of CAVA Group during the 2nd quarter worth approximately $5,719,000. Finally, Algert Global LLC bought a new position in CAVA Group in the second quarter valued at $4,162,000. Institutional investors own 73.15% of the company’s stock.
Analyst Ratings Changes Several research firms have weighed in on CAVA. TD Cowen lowered their price target on CAVA Group from $100.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday, August 12th. Robert W. Baird raised shares of CAVA Group to a “strong-buy” rating in a report on Monday, August 24th. DA Davidson lowered their price objective on CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a research report on Thursday, August 13th. Citigroup reiterated a “buy” rating on shares of CAVA Group in a research report on Tuesday, July 28th. Finally, Freedom Capital raised CAVA Group to a “hold” rating in a research note on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, CAVA Group currently has an average rating of “Moderate Buy” and a consensus price target of $89.44.
Check Out Our Latest Analysis on CAVA Group CAVA Group Trading Up 0.2% CAVA Group stock opened at $67.08 on Monday. The stock has a 50-day moving average price of $69.99 and a two-hundred day moving average price of $77.36. CAVA Group, Inc. has a 12 month low of $43.41 and a 12 month high of $98.79. The company has a market capitalization of $7.84 billion, a PE ratio of 121.97, a P/E/G ratio of 4.56 and a beta of 1.75.
CAVA Group (NYSE:CAVA – Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01. The firm had revenue of $368.44 million for the quarter, compared to analyst estimates of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The company’s revenue for the quarter was up 31.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.16 EPS. As a group, analysts predict that CAVA Group, Inc. will post 0.54 earnings per share for the current fiscal year.
Insider Buying and Selling In other CAVA Group news, insider Kelly Costanza sold 12,490 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the sale, the insider owned 98,490 shares of the company’s stock, valued at approximately $8,864,100. This represents a 11.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Karen Kochevar sold 10,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $90.00, for a total value of $900,000.00. Following the sale, the director owned 3,074 shares in the company, valued at approximately $276,660. The trade was a 76.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 67,512 shares of company stock valued at $6,050,417 over the last 90 days. 6.70% of the stock is currently owned by corporate insiders.
CAVA Group Company Profile (Free Report)
CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.
Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.
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Key Takeaways CAVA's Q2 same-store sales rose 9%, driven by a 5.3% increase in traffic.CAVA's Q2 Same-store sales recovered to the mid-single-digit range after Cyclospora concerns pressured demand.CAVA maintained 2026 comps guidance of 4.5%-6.5%, supported by loyalty growth and menu innovation. CAVA Group, Inc. (CAVA - Free Report) reported 9% same-store sales growth in the second quarter of 2026, driven by a 5.3% increase in traffic. The traffic-led performance points to solid underlying demand, although broader food-safety concerns created a near-term sales headwind around the end of the quarter and into the third quarter. Concerns surrounding the Cyclospora outbreak affected consumer demand for lettuce and fresh produce, even though CAVA does not source leafy greens from Mexico or serve iceberg lettuce.
Recent sales trends indicate that the pressure has moderated. Same-store sales initially slowed to flat to positive as Cyclospora concerns intensified, but improved each week sequentially and most recently recovered to the mid-single-digit range. CAVA also reported no immediate impact from the recent Salmonella outbreak and does not source from the associated farms. The company continues to monitor food-safety developments through its external Food Safety Advisory Council and existing supply-chain traceability capabilities.
The full-year outlook supports continued comparable-sales growth, although at a more moderate rate than the second-quarter pace. CAVA maintained its 2026 same-store sales growth guidance of 4.5%-6.5%, incorporating the impact experienced to date and a prudent assumption regarding the duration of remaining Cyclospora-related pressure. The low end of the range would imply slightly negative same-store sales in the second half, while the upper end would imply mid-single-digit growth. The company stated that current trends do not indicate performance at the lower end of the range.
Several demand indicators provide additional support. Restaurants in lower-income markets are generating the strongest same-store sales results, while restrained menu-price increases are supporting accessibility. CAVA’s loyalty membership is growing faster than its restaurant base, and Pomegranate Glazed Salmon increased the rate of new customers while driving higher frequency among loyalty members who purchased the product. These trends indicate continued traction across value, customer engagement and menu innovation.
Broader restaurant performance also remains favorable. New restaurant productivity stayed above 100%, with strength across geographies and restaurant formats, while the 2024 cohort is generating double-digit same-store sales. These operating fundamentals support the durability of positive comparable-sales growth despite near-term food-safety concerns.
CAVA’s Price Performance, Valuation & EstimatesCAVA’s shares have gained 6.9% in the past year against the industry’s 6.9% decline. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) and McDonald's Corporation (MCD - Free Report) have declined 21.8% and 14.1%, respectively.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 5, above the industry’s average of 3.12. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 3.49 and 6.55, respectively.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 earnings per share has declined in the past 60 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
The company is likely to report flat earnings in 2026 on a year-over-year basis. Conversely, industry players such as McDonald’s and Dutch Bros are likely to witness an increase of 5.6% and 27.6%, respectively, year over year in 2026 earnings.
CAVA’s Zacks RankCAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booking: Navigating Seasonal Fluctuations Within a Large Base of Quarterly RevenueBooking (BKNG +2.28%) primarily generates revenue by offering global online reservation services for accommodations, vehicle rentals, flights, vacation packages, and restaurant dining across multiple digital brands aimed at both individual consumers and travel service providers.
While navigating an expanded collective lawsuit from European hospitality associations and updating an organizational restructuring program targeting expense savings, it reported an operating margin of approximately 34% for the quarter ended June 30, 2026.
CAVA: Maintaining a Consistent Upward Trajectory in Total Quarterly RevenueCAVA (CAVA +4.88%) primarily generates revenue by operating a chain of Mediterranean dining establishments and distributing its branded savory dips, spreads, and signature dressings through various grocery retailers and online food ordering services.
It appointed a new director to its board. It launched an internal career development platform to support future hiring initiatives and reported a free cash flow margin of about 8% for the quarter ended July 12, 2026.
Why Tracking Quarterly Revenue Matters for Individual Retail InvestorsRevenue here refers to the standardized income statement revenue line item, and this foundational financial metric matters because it helps investors clearly understand the total amount of money entering the business before accounting for any operating expenses, taxes, or internal administrative costs.
Comparing Quarterly Revenue for Booking and CAVA Over Recent QuartersCalendar quarterBooking RevenueCAVA RevenueQ3 2024$8.0 billion (quarter ended Sept. 30, 2024)$243.8 million (quarter ended Oct. 6, 2024)Q4 2024$5.5 billion (quarter ended Dec. 31, 2024)$227.4 million (quarter ended Dec. 31, 2024)Q1 2025$4.8 billion (quarter ended March 31, 2025)$331.8 million (quarter ended April 20, 2025)Q2 2025$6.8 billion (quarter ended June 30, 2025)$280.6 million (quarter ended July 13, 2025)Q3 2025$9.0 billion (quarter ended Sept. 30, 2025)$292.2 million (quarter ended Oct. 5, 2025)Q4 2025$6.3 billion (quarter ended Dec. 31, 2025)$275.0 million (quarter ended Dec. 28, 2025)Q1 2026$5.5 billion (quarter ended March 31, 2026)$438.3 million (quarter ended April 19, 2026)Q2 2026$7.4 billion (quarter ended June 30, 2026)$368.4 million (quarter ended July 12, 2026)Data source: Company filings. Data as of Aug. 17, 2026.
Foolish TakeBooking is the larger, more established business operating in the massive travel industry. But CAVA's higher revenue growth rate indicates it is a promising emerging restaurant brand worth considering for long-term investors.
Both companies experience mild fluctuations in quarterly revenue, but year over year, they consistently grow revenue. A better way for investors to measure their performance is to use trailing 12-month figures.
On a TTM basis, both companies experience smoother growth curves. Booking reported TTM revenue of $28 billion through the second quarter, rising 13% year over year. CAVA posted TTM revenue of $1.4 billion, up 27%.
Booking is serving a growing travel industry, and it's also currently expanding its addressable market with new offerings through its Connected Trip strategy. This means its revenue will likely continue to expand over the next decade, making it difficult for CAVA to reach it.
Investors will want to watch CAVA's restaurant expansion, as it is early in opening more locations. Its restaurant base is still in the hundreds, and as it scales, its revenue and earnings potential will almost certainly grow.
CAVA Group Inc. (NYSE: CAVA) shareholders should email [email protected] NEW YORK, Aug. 17, 2026 (GLOBE NEWSWIRE) --
What is the Investigation About?
Cava Group founders and board members sold massive quantities of stock while concealing deteriorating business fundamentals.
Entities tied to Belgian billionaire Eric Wittouck offloaded nearly $1.8 billion in shares, while other company insiders and directors sold approximately $500 million more. Of that insider total, roughly $330 million is linked to co-founder Ronald Shaich. All of these sales occurred between August 2024 and March 2025, a window that ended right before Cava began making corrective disclosures about its slowing performance.
Cava’s leadership may have been aware the company’s growth trajectory was faltering due to broader fast-casual industry headwinds, but continued projecting strength to the market. The corrective disclosures came in February and March 2025, when the company began acknowledging that its post-IPO growth was decelerating. By then, insiders had already completed their selling spree.
If you own CAVA Group Inc. (NYSE: CAVA) securities, please contact Fletcher Moore at [email protected].
You may be able to seek monetary damages, corporate governance reforms, reimbursement to the company, and a court approved incentive award at no cost to you whatsoever. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
MOORE LAW PLLC
30 Wall Street, 8th Floor
New York, NY 10005 [email protected]
www.fmoorelaw.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7546cca8-ccd3-49d8-9075-0698e254e309
Key Takeaways CAVA gained 19.2% in a week as fresh earnings results sharpen focus on its operating momentum.CAVA's revenue rose 31.3%, EPS topped estimates, traffic grew 5.3%, and 17 net new restaurants opened.CAVA's 5.17 forward P/S ratio remains a premium, while restaurant-level margins fell 60 basis points. CAVA Group, Inc. (CAVA - Free Report) shares gained 19.22% in the past week, putting fresh attention on whether operating momentum can keep pace with investor expectations.
The move should not be assigned to any single development. CAVA's latest earnings, traffic, restaurant expansion and valuation instead provide a framework for judging whether the recent price strength is supported by business performance.
CAVA's 19.2% Jump Meets a Fresh Earnings BeatCAVA reported fiscal second-quarter 2026 earnings of $0.19 per share, up from $0.16 a year earlier and 5.6% above the Zacks Consensus Estimate of $0.18. Total revenues increased 31.3% year over year to $368.44 million and topped the consensus mark of $353 million by 4.4%.
Those results add fundamental context to the stock's one-week advance. They show that sales and earnings improved sharply in the quarter, but they do not establish that the earnings report caused the share-price move.
CAVA Traffic and Unit Growth Reinforce MomentumSame-restaurant sales rose 9%, with guest traffic contributing 5.3% and menu price and product mix adding 3.7 percentage points. Average unit volume increased to $3.09 million from $2.94 million a year earlier.
CAVA opened 17 net new restaurants and ended the quarter with 476 locations, up 19.6% year over year. New restaurant productivity remained above 100%, and the company reaffirmed its fiscal 2026 plan for 75-77 net new openings.
CAVA Margins Reveal the Cost of Growth InvestmentsRestaurant-level profit increased 28.1% year over year to $93.81 million, but restaurant-level profit margin declined 60 basis points to 25.7%. Higher sales therefore produced more restaurant-level profit dollars without preventing margin compression.
Food, beverage and packaging costs rose 50 basis points to 30% of CAVA revenues, largely because of salmon input costs. Labor costs increased 30 basis points to 25.3% as CAVA made an incremental 3% wage investment, while other operating expenses rose 40 basis points to 12.8% on a higher third-party delivery mix.
CAVA's Premium Valuation Raises the BarCAVA trades at a forward 12-month price-to-sales ratio of 5.17, versus 3.16 for its Zacks sub-industry and 1.51 for the broader Zacks sector. The multiple is below CAVA's two-year median of 6.83, but it still represents a sizable premium to both comparison groups.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter 2026 comparable restaurant sales growth of 2.2% and a restaurant-level operating margin of 25.2%. Shake Shack Inc. (SHAK - Free Report) posted same-Shack sales growth of 3.5% and a restaurant-level profit margin of 23.0% in its latest quarter. These peers provide useful operating context, though their concepts and scales differ from CAVA's.
CAVA's Mixed Signals Temper the Momentum CaseThe bottom line is that CAVA's recent stock strength is accompanied by rapid revenue growth, positive traffic and continued unit expansion, while margin pressure and a premium valuation keep the execution bar high.
CAVA currently carries a Zacks Rank #3 (Hold). It also has a Growth Score of A, a Value Score of F, a Momentum Score of F and a VGM Score of D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth Score points to favorable growth characteristics under the Zacks Style Score framework. The F grades for Value and Momentum indicate weaker characteristics in those styles, while the VGM Score of D reflects an unfavorable combined profile across value, growth and momentum. Together with the Zacks Rank #3, the scores support a more balanced view of CAVA's near-term prospects rather than a clear-cut signal from the one-week rally alone.
Key Takeaways CAVA's Q2 revenue rose 31.3% and EPS increased 18.8%, both topping consensus estimates.CAVA's 9% same-restaurant sales gain was driven more by 5.3% traffic growth than pricing and mix.CAVA reaffirmed 75-77 openings as rising food, labor and delivery costs pressured restaurant-level margins. CAVA Group, Inc. (CAVA - Free Report) delivered another quarter of rapid growth as restaurant expansion and guest demand supported higher revenues and earnings. Rising food, labor and delivery costs, however, limited margin flow-through.
CAVA also maintained its fiscal 2026 outlook, putting the focus on whether healthy sales trends can offset those pressures as the restaurant base expands.
CAVA's Q2 Beat Shows Demand Is Still HealthyFiscal second-quarter 2026 earnings increased 18.8% year over year to 19 cents per share from 16 cents. The result topped the Zacks Consensus Estimate of 18 cents by 5.6%.
Total revenues rose 31.3% to $368.44 million and exceeded the consensus mark of $353 million by 4.4%. Both measures kept rapid growth at the center of the quarterly results.
CAVA Traffic Drives a 9% Same-Store GainSame-restaurant sales increased 9% in the quarter. Guest traffic contributed 5.3 percentage points, exceeding the 3.7-point contribution from menu price and product mix.
That traffic-led mix matters because management said it has no intention of changing pricing in the near future. Guest growth therefore remains central to supporting comparable sales without greater reliance on price increases.
CAVA Keeps Its 75-77 Opening Plan IntactCAVA opened 17 net new restaurants and ended the quarter with 476 locations, up 19.6% year over year. New restaurant productivity remained above 100%, and management reaffirmed guidance for 75-77 net new openings in fiscal 2026.
Chipotle Mexican Grill, Inc. (CMG - Free Report) opened 100 company-owned restaurants in its second quarter, underscoring unit development as a growth lever for another fast-casual operator. Shake Shack Inc. (SHAK - Free Report) opened 16 company-operated Shacks and 11 licensed Shacks in its second quarter, also expanding its footprint.
CAVA Margin Pressure Clouds the Revenue BeatRestaurant-level profit increased 28.1% year over year to $93.81 million, but restaurant-level profit margin declined 60 basis points to 25.7%. Higher sales therefore did not produce margin expansion.
Food, beverage and packaging costs rose 50 basis points to 30% of CAVA revenues, largely because of salmon input costs. Labor costs increased 30 basis points to 25.3% on an incremental 3% wage investment, while other operating expenses rose 40 basis points to 12.8% on a higher third-party delivery mix.
CAVA Sales Rebound After Food-Safety ConcernsIndustry concerns around the Cyclospora outbreak pressured same-restaurant sales around quarter-end even though CAVA said it did not source leafy greens from Mexico or serve iceberg lettuce. Trends then improved sequentially and most recently recovered to the mid-single digits.
Management maintained fiscal 2026 same-restaurant sales growth guidance of 4.5%-6.5%. The outlook incorporates the disruption experienced to date as well as macroeconomic and geopolitical uncertainty, making the sales rebound important for the second half.
CAVA's Growth Score Outshines Other SignalsThe bottom line is that CAVA's quarterly beat reinforced its traffic and expansion story, but cost pressure is limiting margin flow-through. Maintaining the full-year outlook keeps sales, openings and restaurant-level profitability in focus.
CAVA currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Value Score of F, Momentum Score of F and VGM Score of D. The Growth Score points to favorable growth characteristics, while the Value and Momentum scores signal weaker characteristics in those styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The VGM Score combines value, growth and momentum characteristics, so its D grade tempers the strength of the Growth Score. With a Zacks Rank #3 and mixed Style Scores, investors may want to balance CAVA's operating growth against margin pressure, valuation and near-term momentum rather than treating the earnings beat as a stand-alone signal.
Key Takeaways CAVA's revenue rose 31.3% and same-restaurant sales gained 9%, keeping growth central to its investment case.CAVA ended the quarter with 476 locations, $435.6M in cash and investments, and no debt outstanding.CAVA's 5.17 forward P/S premium faces margin pressure as restaurant-level margin fell 60 basis points. CAVA Group, Inc. (CAVA - Free Report) is expanding quickly as traffic growth and cash generation strengthen its operating case. The harder question is whether that growth can support a valuation that remains well above industry and sector levels.
For investors weighing a new position, the balance is mixed. Restaurant expansion and comparable sales remain favorable, but margin pressure and demanding expectations leave less room for execution setbacks.
CAVA's Sales Growth Keeps the Bull Case AliveFiscal second-quarter 2026 revenues increased 31.3% year over year to $368.44 million, while same-restaurant sales rose 9%. Guest traffic contributed 5.3% and menu price and product mix added 3.7 percentage points.
The Zacks Consensus Estimate for fiscal 2026 sales is $1.503 billion, compared with $1.180 billion in fiscal 2025. That keeps top-line expansion at the center of the investment case.
CAVA's Unit Economics Support ExpansionAverage unit volume increased to $3.09 million from $2.94 million a year earlier, and new restaurant productivity remained above 100%. CAVA opened 17 net new restaurants and ended the quarter with 476 locations, up 19.6% year over year.
CAVA also had about $435.6 million of cash and investments, no debt outstanding and $44.8 million of free cash flow through the first 28 weeks of fiscal 2026. Management maintained its plan for 75-77 net new openings for fiscal 2026.
CAVA's Premium Multiples Demand Strong ExecutionCAVA trades at a forward 12-month price-to-sales ratio of 5.17, compared with 3.16 for its Zacks sub-industry and 1.51 for the broader Zacks sector. The multiple is below CAVA's two-year median of 6.83, but the relative premium raises the cost of operational disappointment.
Peer results reinforce the execution test. Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter 2026 comparable restaurant sales growth of 2.2% and a restaurant-level operating margin of 25.2%. Shake Shack Inc. (SHAK - Free Report) posted same-Shack sales growth of 3.5% and a restaurant-level profit margin of 23.0% in its latest quarter.
CAVA Margin Risks Complicate the Upside CaseCAVA's restaurant-level profit increased 28.1% to $93.81 million, but restaurant-level profit margin declined 60 basis points to 25.7%. Food, beverage and packaging costs rose 50 basis points to 30% of CAVA revenues, while labor costs increased 30 basis points to 25.3%.
Management continues to expect a restaurant-level profit margin of 23.7%-24.3% for fiscal 2026. The outlook reflects fuel surcharges, the partial rollout of pre-marinated chicken and continued wage investments. Management also has no intention of changing pricing in the near future.
CAVA's Style Mix Favors Growth Over ValueThe bottom line is that CAVA's expansion, traffic and liquidity support the growth case, but its valuation premium and margin pressure argue against relying on growth alone. The Zacks Consensus Estimate for current fiscal-year earnings has moved 1.7% lower over the past four weeks, adding another point for investors to monitor.
CAVA currently carries a Zacks Rank #3 (Hold), with a Growth Score of A, Value Score of F, Momentum Score of F and VGM Score of D. The Growth Score indicates favorable growth characteristics, while the weaker Value and Momentum scores and combined VGM grade temper that strength. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Zacks Rank #3 does not provide the same favorable short-term signal as a #1 or #2 rank. The current mix is more consistent with a wait-and-evaluate stance than an unqualified buy case, with traffic, margin execution and valuation remaining key variables.
Explore the exciting world of Cava (CAVA +3.10%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
CAVA Group (NYSE:CAVA) shares jumped 12.7% after the fast-casual chain beat second-quarter estimates on both revenue and earnings, with same-restaurant sales climbing 9% and easing investor concerns over a recent cyclospora-linked slowdown in the sector.
Revenue rose 31.3% year-over-year to $365.4 million, topping estimates of $361 million, while adjusted earnings per share came in at $0.19, ahead of the $0.18 consensus. Guest traffic increased 5.3%, the company said.
Adjusted EBITDA rose 30% to $54.7 million, beating estimates of $52.1 million, and net income increased 25.3% to $23 million versus estimates of $21.9 million.
Restaurant-level profit rose 28.1% to $93.8 million, though restaurant-level profit margin slipped 60 basis points to 25.7%.
The company opened 17 net new restaurants in the quarter, bringing its total to 476, and reported free cash flow of $44.8 million. Digital sales made up 39% of revenue.
CAVA affirmed its full-year guidance, projecting adjusted EBITDA of $181 million to $191 million, same-restaurant sales growth of 4.5% to 6.5%, and restaurant-level profit margin of 23.7% to 24.3%. The company still expects to open 75 to 77 net new restaurants this year, with pre-opening costs of $22 million to $22.5 million.
Analysts at Jefferies said quarter-to-date trends were better than feared, with cyclospora-related headwinds moderating after same-restaurant sales bottomed in the "flat to slightly positive" range in mid-to-late July before recovering toward mid-single-digit percentage growth in the most recent week.
Jefferies attributed the traffic gains partly to the launch of a glazed salmon menu item, which is set to run through year-end, alongside continued demand across income cohorts and higher spending on premium items, sides and beverages.
Shares of CAVA Group (CAVA +14.24%) climbed on Wednesday after the Mediterranean-style restaurant chain's healthy sales helped to assuage investors' fears that the Cyclospora outbreak would weigh on its performance.
Image source: CAVA Group.
Expansion plans remain on track CAVA's revenue jumped 31% year over year to $365 million in its fiscal second quarter, which ended on July 12.
The fast-casual chain opened 17 new restaurants during the quarter and a total of 94 over the past year, bringing its total to 476 locations.
CAVA's same-restaurant sales, which include revenue from stores open for at least one year, increased 9%, fueled by a 5.3% rise in guest traffic.
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69.47
Notably, CAVA's average sales per restaurant, a metric known as average unit volume, rose to 7% to $3.1 million. That impressive performance places it on par with industry leader Chipotle Mexican Grill.
All told, CAVA's earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 30% to $55 million.
Cyclospora's impact could be more moderate than expected CAVA expects to open a total of 75 to 77 restaurants in 2026. Management projects full-year adjusted EBITDA of $181 million to $191 million, driven by these store openings and same-restaurant sales growth of 4.5% to 6.5%.
During a conference call with analysts, CEO Brett Schulman helped to calm investors' fears that the Cyclospora outbreak would weigh heavily on CAVA's business.
"While we do not source leafy greens from Mexico and do not serve iceberg lettuce on our menu, exiting Q2, we saw near-term sales impacts related to broad concerns around lettuce and fresh produce consumption due to the Cyclospora outbreak," Schulman said. "We have since seen same-restaurant sales begin to rebound, a testament to the underlying strength of our long-term brand proposition."
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Cava Group Inc.'s sales rose faster than expected due to increased traffic and customers buying higher-priced proteins and extras such as pita chips. Bloomberg's Michael Halen joins to discuss this as well as Brinker's earnings.
